NORTHERN ADVOCATE DAILY MONDAY, MARCH 19, 1934. STERLING AND DOLLAR

Northern Advocate, 19 March 1934, Page 4

NORTHERN ADVOCATE DAILY

MONDAY, MARCH 19, 1934. STERLING AND DOLLAR

legiateretl for transmission through ' the post as a Newspaper.

For so,my weeks In ere lias been noticeable official silence regarding* efforts in America to stabilise the pound and the dollar in relation .to each other. At the some,.time,; it is clear, from paper:! which . have arrived . by recent mai 1 s, ilia 1 the. press of the United States believes, that secret negotiations have, been in. progress. ... ’About the middle . of January. Mr Mailer. Lippmann, a well-kmnvn • American,., publicist, wrote, in an article ...which was ■widely syndieateel tlirougliont the -continent: ‘ ‘ There willbe no currency war with Britain, Our [common.-interests immense as to. overshadow aU rivalries.;. We are not enemies in trade, finance, and diplomacy, but naturally, inevitably, and inextricably friends and partners. . . . When wo complete reflation, our .prices rate will -fluct uate a round the purchasing power parity of the two currencies, and the. chances overwhelmingly arc that it will he the rate which has prevailed for a century;”-The Washington correspondent of the “■New York Times,” a particularly well .informed writer, tela' g-raphed to Ids paper on January 2J that a survey of stabilisation possibilities ■ by financial representatives of Britain, Prance and the United States.would probably precede a resumption of the international economic conference. It would be coudueled in deep secrecy, and “it may be that, there is a confidential representative of, the President in London now.'” On March 9 a message from Washington stated that Professor Miner, the newly appointed adviser to the Treasury, has. for some time been in London, and “it is thought possible that- he has arranged an unofficial truce.” The “New York Times” article above mentioned reflected reaction in Washington to the British Prime Minister’s references, in a speech at Leeds on January- . 23, to an eventual resumption.of the Economic Conference and the need for enr- | rency. stabilisation. “For months past/ ’ -runs; • the Washington despatch, “the President lias told visitors'- - thaf lie regards a currency .- Mahdisation.. agreement, with ({real Britain in particular, as essential to-recovery. He has expressed, the view that it Would he unwise, and even dangerous, to attempt, dollar stabilisation -.without the partnership of the pound.” This correspondent has proved, by his past performances, that he is in close touch with the ■Administration. His words, therefore, are not; lightly to he disregarded. He declares further that the “10 per cent, differential” in the president’s Monetary Bill—the margin between the minimum devaluation at 60 cents and the maximum at 50— and the 2000 million dollar equalisation fund, were written into the bill “for especial use in reaching a currency accommodation with (1 rent Britain.” Speaking at Lct-ds, the Prime Minister of Britain said: “One of the essential things is to got the great nations to come to agreements about exchange values ol their currencies. We are never going to get .full, free trade unless we know what I he relation is between the dollar and sterling and the dollar and Ihe franc.” That must, bo said, be (be first stage in building up tbe machinery of a co-operative 'world. “We are watching every opportunity to enable us to get together again with the agenda of the World Economic Conference . . to remove unnecessary and increase the stream of international trade,” The “NcwLork Times” asserts that Mr Macßonadlc is annoyed with, the British financial experts in their slowness to go forward to meet Amorh can unofficial advances. ' Mi- A. Patou, of Martin’s Bank, Lon-

doir, "matle Lis amnia 1 survey of the--financial position two days lat err and he was compliment ed S hy..a-leading ..London financial ■ critic for discounting the alarm- a' ist view that a depreciated dollar f would adversely affect British recovery. Discussing these recent ■ developments, the‘‘Sydney Morning Herald” sums up the position . in the following words, ( -j which appear to be based on r very solid ground: “Taken to- I t i gather with President Boosevolt’s recent request from (ton- r gross for powers to negotiate ( tariff remissions, these signs of. J | return towards international eo- i | operation are encouraging. One l i explanation of London comments | ; discountenancing any present i change in leadership of the I\a-d jtional Oovcrnmcnt. is doubtless •* | the desire to preserve Mi*/ i MacDonald'in that post for the,-' 'possible reassembly oi the inter-' 1 i national conference. He and , ( i President Roosevelt are said to j : Ihe in sympathetic understanding _, j with each other.” . j